Delaware’s State and Local Government Workforce is the Twenty-First “Least Productive” in 2016

Jan 30, 2018

There are two major elements to look at when examining a state’s state and local government workforce—the number of employees and the level of their pay. In this analysis, each element is measured relative to the national average and summed together to obtain an overall measure of workforce productivity. Based on this state and local government workforce productivity index, Delaware has the twenty-first least productive state and local government workforce in the country.

As shown in Chart 1, for state and local government employment in 2016, Delaware employed 15.3 employees for every 100 employees in the private sector (employment ratio) which is -2 percent below the national average of 15.7 and is 16th lowest ratio in the country.

Additionally, Delaware’s employment ratio has been increasing. As shown in Chart 2, between 1969 and 2016, the employment ratio grew by 9 percent to 15.3 in 2016 from 14.1 in 1969. This increase is faster than the national average which increased by 2 percent to 15.7 in 2016 from 15.4 in 1969.

As shown in Chart 3, for state and local government compensation in 2016, Delaware government employees earn 15 percent more than those in the private sector (compensation ratio) which is 11 percent higher than the national average of 14 percent and is the 18th highest compensation ratio in the country.

Additionally, Delaware’s compensation ratio has been increasing. As shown in Chart 4, between 1969 and 2016, the compensation ratio increased by 34 percentage points to 15 percent in 2016 from -19 percent in 1969. This growth rate is significantly faster than the national average which increased by 15 percentage points to 14 percent in 2016 from -1 percent in 1969.

As shown in Chart 5, it is state and local wages and salaries that are responsible for Delaware’s higher than average government compensation ratio. For state and local wages and salaries in 2016, Delaware employees earn -4 percent less than those in the private sector which is the 19th highest wages and salaries ratio in the country and higher than the national average of -8 percent.

For state and local benefits in 2016, Delaware employees earn 103 percent more than those in the private sector which is -19 percent lower than the national average of 127 percent and is the 25th lowest benefit ratio in the country.

Of course, efficiency for local government helps to be measured on a more local scale. As such, we have also calculated the employment and compensations ratios of local government workers for every county in Delaware.

The Delaware local government employment ratios are (state average is 6.9, ranked from highest to lowest):

Kent County, DE (9.2)

Sussex County, DE (8.0)

New Castle County, DE (5.7)

The Delaware local government compensation ratios are (state average is 14 percent, ranked highest to lowest):

Kent County, DE (105 percent)

Sussex County, DE (76 percent)

New Castle County, DE (7 percent)

Overall, it is Delaware’s higher than average compensation ratio, driven by wages and salaries, that is the primary reason for Delaware having the 21st worst state and local government workforce productivity index.

Finally, don’t forget to watch our exclusive time-lapse video of our state and local government workforce productivity index over the last 47 years! See if your state has been above or below the national average?

J. Scott Moody

Scott has nearly 20 years of experience as a public policy economist. He is the author, co-author and editor of over 180 studies and books. His professional experience also includes positions at the American Conservative Union Foundation, Granite Institute, Federalism In Action, Maine Heritage Policy Center, Tax Foundation, and Heritage Foundation.